EUR/USD extends post-Macron profit-taking slide from yearly tops

The EUR/USD pair extended post-Macron retracement from fresh six-month tops beyond the key 1.1000 psychological mark and has now dropped to fresh session low near mid-1.0900s.

Except for the initial bullish reaction, the subsequent price-action seems to suggest that the markets had already priced-in pro-EU centrist Emmanuel Macron's win in the second round of the French presidential elections. With investors already positions for a Macron victory, a bullish weekly gap to the highest level since Nov. 2016 was seen as an opportunity to take some profits off the table. 

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Also collaborating to the retracement was a modest US Dollar buying interest amid growing prospects for an eventual Fed rate-hike action. In fact, the CME group's FedWatch Tool is currently pointing to over 85% probability of such an action in June and underpinned the greenback demand, which further collaborated to the pair's retracement from post-US election highs. 

Meanwhile, traders seems to have largely ignored the upbeat release German factory orders data, with  profit-taking turning out to be a dominant theme on Monday. Later during the day, speech by St. Louis Fed President James Bullard would now be looked upon for some fresh impetus.

   •  Eurozone investor confidence and Fed speak amongst market movers today – Danske Bank

Technical levels to watch

Immediate support is seen near 1.0930 area, which is closely followed by support near 1.0915 level.  A convincing drop below the mentioned support levels has the potential to drag the pair back towards 1.0885-80 horizontal support en-route mid-1.0800s.

On the flip side, sustained momentum above the 1.100 handle would reaffirm near-term bullish bias and lift the pair beyond multi-month highs resistance near 1.1020-25 region towards 1.1055-60 horizontal hurdle.